Benefits of trade liberalisation measures on automobile industry

Benefits of trade liberalisation measures on automobile industry
Trade liberalising measures have played a major role in the development of transnational production network in both Europe and Asia, claims Dr Heribert Dieter from the Notre Europe think-tank.

In a comparing European and Asian examples, the author demonstrates how national and international regulations affect the decision of private-sector players for production arrangements. In particular, Dieter analyses the effects of regionalisation on the automobile industry as well as the regionalisation process in general.
Herbert says that European examples, such as Audi in Hungaria and Renault in Romania, show the advantages of cross-border trade and transnational production network for the private-sector strategies. The relocation of production in low-cost countries in eastern Europe enabled the European industry to be more competitive, the author states.
The example of the joint-venture agreement, creating Toyota-Peugeot-Citroën Automobiles, shows how Asian car manufacturers took advantage of globalisation and the emergence of eastern Europe as a location for car production in an innovative manner. The integration of the Czech Republic in the EU has been the decisive factor determining the success of the venture, the paper argues.
Even if both Europe and Asia have initiated process of transnational division of labour, the process is more fragile in Asia as a consequence of the rules of origin. According to the author, a major advantage of European industries is the free-trade area that allows companies to source inputs into a range of countries without having to consider their origin.
Therefore, the author recommends the creation of an East Asian customs Union, which would represent a more advanced form of regionalisation than a free-trade agreement. Apart from the impediment that Asian countries would have to overcome, this single regulatory scheme would be an improvement for transnational production networks

from - http://www.euractiv.com/en/trade/benefits-trade-liberalisation-measures-automobile-industry/article-164936

Automobile Industry Chinese Copycats

Automobile Industry – Chinese Copycats
The plain similarities between automobiles such as Mercedes C vs Geely Merrie 300(above) sparks debate whether the Chinese designs are just blatant copies of their more established counterparts.




The plain similarities between automobiles such as Mercedes C vs Geely Merrie 300(above) sparks debate whether the Chinese designs are just blatant copies of their more established counterparts. Judge them by yourselves with 11 more pics after the jump.
Judge them by yourselves with 11 more pics after the jump.

automobile industry in korea

Korea's Automotive Industry

The domestic sales of automobiles in June 2010 fell by 15.2% to 121,546 from the previous year, while export (261,725) and import (7,629) rose by 45.7% and 12.0% on a year-on-year basis respectively.

In the first half of 2010, the domestic sales and import showed good performance thanks to the recovering consumer confidence and the release of new models. However, the growth of the industry has been slowed down since May, because of the base effect stemming from the tax benefits for selling clunkers, which started last year.

The export of the first half of 2010 has continued to rise despite the fiscal crisis of Southern Europe on the back of the recovering U.S. market and the increased sales in emerging countries

 

 

Japanese Auto Industry

Japanese auto industry has grown constantly over a long time and has finally overtaken U.S. auto industry as number one producer of cars in world. Major manufacturers of cars in Japan – Toyota, Honda, Nissan, Suzuki, and Mazda are also amongst largest manufacturers of cars in world.
Overcoming ill effects of defeat in Second World War that had destroyed national economy, was not an easy process on part of Japanese industries. Car manufacturers belonging to Japanese auto industry were commissioned to supply army trucks to South Korea by Federal Government of U.S. during Korean War between 1950 and 1953. This was main reason behind upswing of Japanese auto industry that began in 1960s.



Products of Japanese auto industry, that is, Japanese cars, are of a superior grade and last for longer periods, in addition to being fuel efficient. Japaneses cars are primarily priced at affordable rates which are comparatively much lower than cars produced by their foreign competitors especially those based in U.S. and Western Europe
Japanese auto industry has grown in domestic car markets as well as in car markets around globe mainly due to production of “kei cars” or smaller sized cars that not only turned cars more affordable but also reduced payment made towards taxes, that had to be paid by owners of larger cars.
Toyota has recently overtaken General Motors of U.S. as leading producer as well as seller of cars in world. Toyota Motor Corporation is therefore best bet of Japanese auto industry. And Honda has overtaken Nissan to become second largest producer of cars of Japanese auto industry

from - http://www.economywatch.com/world-industries/automobile/japanese-auto-industry.html

Automakers push back on U.S. fuel efficiency targets

Automakers push back on U.S. fuel efficiency targets

While the industry touts cleaner burning engines and is more serious about batteries for hybrids and electric plug-ins, car companies are seeking to slow or ease any requirement to nearly double efficiency by 2025 to 60 miles per gallon.


Two years ago, struggling automakers, some receiving billions of dollars in taxpayer aid, agreed with the Obama administration to raise average fuel efficiency 40 percent to 35.5 miles per gallon by 2016, the largest jump ever.


But they are drawing the line at more aggressive mandates, making it their top lobbying priority in Washington as they emerge from a four-year slump that devastated U.S. production.


"Fuel economy regulations are by far the most expensive regulations that automakers face," Shane Karr, vice president of government affairs for the Alliance of Automobile Manufacturers, said in a January letter to House Oversight Committee Chairman Darrell Issa.


The 2012-2016 standards are estimated to cost more than $50 billion, and the 2017-2025 standards are likely to be even more expensive, Karr said.


Karr's group represents big auto companies, including Toyota Motor Corp., General Motors Co., Ford Motor Co., and Volkswagen AG.


Philip Gott, an auto industry analyst at IHS Global Insight consultants, said the more aggressive fuel standard would add thousands of dollars to the price of each vehicle.


The final fuel economy requirements will determine product plans for years and could run counter to market demand if consumers continue to want less-efficient large vehicles.


Sport utilities and pickup trucks sell for more than small cars and remain a huge source of industry profit, especially for U.S. manufacturers.


Profits, jobs


Automakers are emboldened in their regulatory battle by an 11 percent jump in U.S. sales last year and renewed profits, strengthening their position with policymakers and Congress.


Executives have more leverage to argue that aggressive regulation could stunt their long-term prospects and slow their ability to create and preserve jobs that politicians are desperate to promote with U.S. unemployment stubbornly high.


Investors have supported GM, which emerged from government ownership to launch a successful IPO, and Ford, which is cutting debt and building its line up of efficient vehicles.


Even Chrysler, which nearly collapsed before its bailout and bankruptcy, has pulled off a surprising turnaround under the management of Italy's Fiat SpA and is planning a share offering.


"The automotive sector's ability to continue to add jobs and contribute to the health of the U.S. economy depends on regulations that provide clarity and certainty," Karr said.


Industry's hand has also been bolstered by regulation-skeptical Republicans assuming control of the House of Representatives in January.


Issa has already solicited industry views on regulatory overreach, while Energy and Commerce Chairman Fred Upton proposed legislation challenging the Environmental Protection Agency's regulation of tailpipe emissions, an issue automakers unsuccessfully litigated in the past.


The move by Upton, from Michigan, is viewed as an effort to neutralize the influence of California, a trailblazer in environmental policy, on federal tailpipe emissions policy.


It is also seen as a way to return sole responsibility for fuel efficiency rules to regulators at the National Highway Traffic Safety Administration, which is considered more friendly to the auto industry than the EPA, which helped develop the 2016 goals.


Transportation and environmental planners are now studying a 60 mile-per-gallon benchmark for the 2017-25 period, which one industry insider in Washington called terrifying.


GM Chief Executive Dan Akerson was subtler. He said after a recent meeting with members of Congress that the target requiring 6 percent annual gains was "pretty ambitious."


The biggest U.S. automaker is joining other manufacturers in raising concerns over the lofty efficiency aims.


Brendan Bell, a lobbyist for the Union of Concerned Scientists, said the biggest car companies are "back to their old behavior" when they fought fuel economy increases for years.


"I think the auto industry is feeling the wind at their back," said Bell

from - http://www.autonews.com/apps/pbcs.dll/article?AID=/20110215/COPY01/302159954/1135

Automobile Industry

Industry OverviewSince the first car rolled out on the streets of Mumbai (then Bombay) in 1898, the Automobile Industry of India has come a long way. During its early stages the auto industry was overlooked by the then Government and the policies were also not favorable. The liberalization policy and various tax reliefs by the Govt. of India in recent years has made remarkable impacts on Indian Automobile Industry. Indian auto industry, which is currently growing at the pace of around 18 % per annum, has become a hot destination for global auto players like Volvo, General Motors and Ford.

A well developed transportation system plays a key role in the development of an economy, and India is no exception to it. With the growth of transportation system the Automotive Industry of India is also growing at rapid speed, occupying an important place on the 'canvas' of Indian economy.

Today Indian automotive industry is fully capable of producing various kinds of vehicles and can be divided into 03 broad categories : Cars, two-wheelers and heavy vehicles.

Snippets

• The first automobile in India rolled in 1897 in Bombay.
• India is being recognized as potential emerging auto market.
• Foreign players are adding to their investments in Indian auto industry.
• Within two-wheelers, motorcycles contribute 80% of the segment size.
• Unlike the USA, the Indian passenger vehicle market is dominated by cars (79%).
• Tata Motors dominates over 60% of the Indian commercial vehicle market.
• 2/3rd of auto component production is consumed directly by OEMs.
• India is the largest three-wheeler market in the world.
• India is the largest two-wheeler manufacturer in the world.
• India is the second largest tractor manufacturer in the world.
• India is the fifth largest commercial vehicle manufacturer in the world.
• The number one global motorcycle manufacturer is in India.
• India is the fourth largest car market in Asia - recently crossed the 1 million mark

from - http://www.surfindia.com/automobile/automobile-industry.html

automobile industry analysis

IHS Global Insight's Automotive Group provides industry analysis, forecasts, data, and consulting services for:

• Manufacturers
• Component suppliers
• Financial organizations
• Transportation companies
• Government departments

We help you make the strategic decisions that sharpen your competitive edge in this complex, fast-changing industry by providing you with the information and tools to quickly and easily:

• Evaluate a market's potential, risk, and opportunity
• Quantify market-segmentation shifts
• Analyze your competitors' product, market, and manufacturing strategies
• Check the accuracy of your internal and customer forecasts
• Assess technology-related risks and opportunities

With our unique global perspective, we understand the forces in play—market, product, technological, economic, financial, trade, transportation, energy, regulatory, demographic, and political —and the ways they interact to influence automotive industry market opportunities.

from - http://globalinsight.com/Automotive
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Thai Automobile Industry

Thailand's Recent Automotive History
In 2004 the Thai government set a goal of producing 1.8 million vehicles by 2010, to become one of the world’s top 10 automotive manufacturers. With production of more than 900,000 vehicles, doubling production would be no easy task. With a solid foundation and the government’s priority on further industry development, Thailand would outline a policy centered on an open foreign investment strategy to further promote auto parts manufacturing and achieve its goals of becoming a top 10 player

Thailand’s open foreign investment strategy -

• Offered support in the form of credit lines extended by state-sponsored financial institutions.

• Set in place very liberal investment policies to pose no export requirements, no foreign equity restrictions in manufacturing, no local content requirements, and no location requirements• Kept the costs of setting up business in Thailand relatively low. Bangkok (Thailand’s capital) consistently ranks as one the least expensive cities in Asia. According to Mercer HR Consulting

• Established Free Trade Agreements that Thailand currently has with a number of countries which encouraged growth for the automotive industry, increasing market access of local investors abroad

Thailand now hosts assembling operations for Ford, GM, Toyota, Isuzu, Honda, Nissan, Mitsubishi, BMW, Daimler Chrysler, and Mazda. Today, the automotive industry is the third largest industry in Thailand, employing an estimated total workforce of more than 400,000 employees. At its peak, Thailand would produce over 1.4 million vehicles

Global Economic Crisis
Thailand was well on its way to becoming the “Detroit of Asia”– a term coined back in 2004. Unfortunately, its once promising auto industry is now following the U.S. city down a similar precipice, and workers now face a growing risk of losing their jobs 
Thailand Automotive Industry's sharp downturn -

• The Automotive Industry Club forecasts expect production to fall by 25 percent in 2009 to slightly over one million units from 1.4 million last year  In January, alone, production was cut by 40 percent, while domestic sales fell by 30 percent. The Federation of Thai Industries has forecast auto exports to slide by as much as 25 percent this year

• 80,000 jobs are likely to be lost in 2009 which constitute about 20% of the industry’s overall workforce

from - http://internationalbusiness.wikia.com/
link
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New & Used Hyundai Cars, Parts & Reviews

Established in 1967, the Hyundai Motor Company unveiled its first car, the Cortina, in its native South Korea a year later. Although another 19 years passed before Hyundai arrived in the U.S., its long overdue arrival didn't go unnoticed. After Hyundai set a new sales record for a first-year import by putting 168,882 Excels on the streets, Fortune magazine named the economy car one of 10 Best Products of 1986. The following year saw the introduction of the Hyundai Sonata, which came to symbolize the growing force in the automotive industry and is still in production today



Once known more for affordability than quality, the Hyundai Motor Company’s new fleet of first-class vehicles earned it a spot among the major players in the industry. The accolades should come as no surprise, considering nearly every model that rolls off the Hyundai assembly line these days proves to be an award winner. Hyundai’s current lineup features six sedans, four SUVs and minivans, and two coupes, all of which have been praised for their state-of-the-art safety features, easy handling, unsurpassed gas mileage, stalwart construction and affordable prices